Rising poultry demand in Egypt to lead to increase in imports, says a report

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Daily News Egypt, 4 March 2016

A shortage in poultry is expected in 2016, with predicted consumption exceeding planned production and importation remaining flat, food services consultancy, and research firm GIRA highlighted in a recent report.

With feed consumption growing by 4%-5% per annum, the firm illustrated that production in 2015 reached about 1,090tn carcass weight equivalent (CWE). Production fell short however at 1,090tn CWE.

Carcass weight or dressed weight refers to the weight of the animal after being butchered and removing the inedible or less desirable portions. The dress weight of chickens is about 75% of that of the live weight.

In 2016, production will surge to about 1,080tn CWE while consumptions will surpass with 2,010tn CWE.

Poultry represents 59% of the total meat consumed in Egypt, the report noted and about 37% of the consumption is beef while the remaining 4% is consumed is lamb or mutton. The total consumption of meat in 2015 is forecasted to reach 2,000tn CWE.

The majority of the poultry production originates from the commercial sector, accounting for about 78%, while 14% comes from backyard production and 8% is imported poultry.

“Import potential has been limited, but could grow rapidly if allowed,” the report read. Egypt only imports whole birds but the report highlighted the potential for chicken parts and mechanically separated meat. “The backyard sector is growing, but slowly compared to [the] overall market.”

On poultry prices, the report stated that when it comes to whole chickens the current prices of Egyptian and Brazilian chicken are similar.

“But Brazilian parts would be considerably cheaper,” the report read, adding that the price of mechanically separated meat can be sold for $0.8 per kilogram. “The US is also capable of shipping leg quarters at around $1.00 per kilogram. Both these products are currently restricted, and could destabilise the carcass balance for producers in Egypt, who must sell the whole bird on the domestic market.”

The Ministry of Supply and Internal trade recently launched a new campaign to supply chicken parts on consumer complexes for EGP 9.5 per kilogram. The campaign, which was launched in Cairo, Giza, Alexandria and several other governorates, also supplies fresh and frozen meat with reductions of 25%.

The price of frozen meat is EGP 50 per kilogram while the price for frozen poultry is EGP 19 per kilogram. The ministry also offers a 4-person meal with prices ranging between EGP 20 and EGP 30.
Daily News Egypt
4 March